USEUROPEAFRICAASIA 中文双语Français
Opinion
Home / Opinion / From the Press

Economist's lessons still valid for Chinese reform

chinadaily.com.cn | Updated: 2013-09-06 17:27

World-renowned British-American economist Ronald Harry Coase passed away on Sept 2 at the age of 102. But his theories are still pertinent to China's future reform, said an article in the Southern Metropolis Daily (excerpts below).

China's reform in the past 30 years actually proves the correctness of Coase's theories: reducing transaction costs and establishing property rights are key elements in any reform.

The future reform of China should continue on that path. However, obstacles remain.

State-owned enterprises, household registration and urbanization are dominated by vested interest groups, who benefit from high transaction costs and poor property rights.

For example, the transaction costs for many State-owned enterprises are much higher than for private enterprises. Were it not for the government's preferential policies and financial support many SOEs would not survive.

Farmers' property rights over their land are not fully protected by relevant laws. Otherwise, it would not have been so easy for governments to use controversial land transfers as a reliable revenue source.

Coase also believed in stimulating public creativity.

China realized fast growth by giving enterprises and rural dwellers their due freedoms and allowing them to earn their living.

Lifting controls will further this process and allow the economy to be more dynamic.

Most Viewed in 24 Hours
BACK TO THE TOP
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US